If you're leading a high-tech startup, your source code is
likely among your most valuable assets. Based on instinct or
suggestions from investors or others, many founders often wonder
whether to register claims of copyright in their software with the
U.S. Copyright Office. While copyright protection arises
automatically upon the creation of software, and the registration
process can seem arcane and bureaucratic, relying on automatic
versus registered protection is vastly different when disputes
arise.
Key Benefits of Registration in Disputes
Without registration, you cannot file a federal lawsuit for
copyright infringement. Even if a competitor has blatantly copied
your code, a registration certificate (or a refusal to register) is
the ticket for admission through the courthouse doors.
Significantly, if you register before infringement occurs, or
within three months of the software's first publication, in a
dispute, you can demand statutory damages (up to $150,000